HomeMy WebLinkAbout1848 ORDINANCE NO. 1848
AN ORDINANCE of the City of Bremerton, Nash ington, providing for the
issuance and sale of $450,000 of water and sewer revenue bonds of the City
for the purpose of providing f~lds for the construction and installation
of certain additions and improvements to the combined water and sewerage
system of the City as provided by Ordinance No. 1845, passed anm approved
August ~l, 1949, fixing the date, form, terms and maturities or said ~bonds,
creating a special fund for the payment oI' the principal and interest there-
of and a Reserve Account, providing certain other protective features safe-
guarding the payment thereof, and rescinding the authority of the City to
issue the remaining $100,000 of water an~ sewer revenue bonds authorized
by Ordinance No.
WHEREAS, by Ordinance No. 1845 of the City, passed and approved Aug-
ust 31, 1949, it was provided that the City should issue and sell its wat-
er and sewer revenue bonds in the principal sum of not to exceed
for the purpose of providing funds for the acquisition, construction and
installation of certain additions and improvements to the combined water
and sewerage system of the City; and
WHEREAS, it has been determined that the City should now issue and
sell only ~480,000 of the $880,000 of water and sewer revenue bonds auth-
orized by said Ordinance No. 18~§ and that its authority to issue and sell
the remaining ~100,O00 oI' said bonds should be rescinded;
NOW, THEREFORE, THE CITY... OF BRENERTON DOES oRDAIN:
Section 1. That I'or the purpose of providing funds to acquire, con-
struct ~d install certain additions and improvements ~o the combined wat-
er anm sewerage system oZ~ the City as provided by Ordinance No. 184~, pass-
ed an~ approved August Z1, 1949, the City shall now issue an~ sell its wat-
er and sewer revenue bonds in the principal sum of $~80,000 out of the
$~$0,000 of such bonds authorized by said Ordinance No. 1848.
Said bonds shall be dated October l, 1949, shall be in denominations
of $4000.00 each, shall be numbered from i to 480 inclusive, shall bear
interest at a rate not ~o exceed 8% per annum payable semiannually on the
first days of April an~ October of each year, an~ shall mature in order
of their number as follows:
October l, 1951 $ 3,000 October l, 1963 $26,000
October l, 1952 3,000 October l, 1964 ~,000
October l, 1955 3,000 October l, 1965 28,000
October l, 1954 4,000 October ~, 1966 29,000
October l, 1955 26,000. October l, 196V 30,000
October l, 1956 1V,O00 October l, 1968 31,000
October l, 1957 8,000 October l, 1969 32,000
October l, 1958 9,000 October l, 19V0 33,000
October l, 1959 l~,O00 October l, 19V1 33,000
October l, 1960 13,000 October l, 19V2 34,000
October l, 1961 14,000 October l, 1973 35,000
October l, 1982 None
Both principal and interest of said bonds shall be payable in lawful
money of the united States of America at the office of the City Treasurer
in Bremerton, Washington, and shall be obligations only against the spec-
~ial I'und created by this ordinance.
The City of Bremerton hereby reserves the right to redeem any or all
of the outstanding bonds of this issue at par in inverse numerical order
on any interest payment date on and after ten years from date of issue by
giving thirty days' not~e of such intended redemption by one publication
thereof in the officia~'~ewspaper not more than forty nor less than thir-
ty ~ays prior to said redemption date. Interest on any bond or bonds so
called for redemption shall cease on such redemption date.
Section 2. Saim bonds shall $~ in substantially the following form:
NO. ~l,000
UNITED STATES OF AMERICA
STATE OF WASHINGTON, CITY OF BREMERTON
WATER AND S~¥ER REVENUE BOND, 1949
KNOW ALL MEN BY THESE PHES~TS:
That the City of Bremerton, a municipal corporation of the State of
Ordinance No. 1848 (Con't)
Washington, hereby acknowledges itself to owe and for value received promises
to pay to bearer on the first day of October, 19__, the principal sum of
ONE THOUSAND ~LLARS
With interest thereon at the ~-'ate of , ~ per annum payable semiannually
on the first days of Apriland October of each year as evidenced by and upon
presentation and surrender of the attached interest coupons as they several-
ly become due. Both principal and interest are payable in lawful money of
the United States of America at the office of the City Treasurer in Bremen-
ton, Washington, solely out of the special fund known as "Bremerton 1949
Water and Sewer Revenue Bond Redemption Fund" created by Ordinance No.
of said City.
The City of Bremerton has reserved the right to redeem any or all of
the outstanding bonds of this issue at par in inverse numerical order on any
interest payment date on and after ten years from date hereof by giving thir-
ty days, notice of such intended redemption by one publication thereof in the
official city newspaper not more than forty nor less than thirty days prior
to said redemption date.
This -bond is one of an issue of water and sewer revenue bonds of like
date and tenor in the total principal sum of $450,000, is issued rot the pur-
pose of providing funds for the acquisition, construction and installation
of certain additions and improvements to the combined water and sewerage sys-
tem of the city, an~ is payable solely out oil the gross revenue cz' said com-
bined system.
The City of Bremerton hereby covenants and agrees with the holder of
this bond that it will keep and perform all the covenants of this bond and
of Ordinances No. 1845 and No. to be by it kept and performed. The
City does hereby pledge and bind itself to set aside from the gross revenue
of said combined water and sewerage system and all additions and improve-
ments thereto, and to pay into said Bond Redemption Fund and into the Reserve
Account created therein by ~ u--u-~,~u,~ uu uu p^-u -~,~,u u~_~ mu-~u~-nem ~n
,said Fund and Account, all within the times provided by said ordinance. Said
amounts so pledged are hereby declared to be a prior lien an~ charge upon the
gross revenue of said combined system, including all additions and i, mprove-
ments thereto, superior to all other charges of any kind or nature except the
necessary cost of maintenance and operation of said combined system and ex-
cept the charges necessary for the payment or the outstanding water revenue
bon~s of the city issue~ under dates of January l, 1939 and May l, 1942, and
the outstanding sewer revenue bon~s of the city issued under date of June l,
1946.
The City has further bound itselz' to maintain said combined system in
good condition and repair and to operate the same in an efficient manner and
to establish, maintain and collect rates and charges for water and sewerage
service that will provide sufficient revenue to pay the necessary cost of
maintenance and operation of said combined system, the charges necessary for
the payment of the principal and interest of said outstanding water and sew-
er revenue bonds, and to pay into said Bond Redemption Fund and Reserve Ac-
count the amounts which the city has pledged to be set aside therein.
It is hereby certified and declared that said bonds are issued pursuant
to and in strict compliance with the Constitution and Laws of the State of
Washington and ordinances of the City of Bremerton, and that all acts, con-
ditions ,,and things required to be Gone precedent to and in the issuance of
this bond have happened, been done and performed as required by law.
IN ~I TNESS WHEREOF, the City of Bremerton has caused this 'bond to be
signed by its Mayor sa~d attested by its Clerk under the corporate seal of
the city, anm the interest coupons attached hereto to be signed with the
facsimile signatures of said officials, this first day of October, 1949.
CITY OF BR~:IERTON, WASHINGTON
By.
ATTEST: Mayor
City Clerk
The interest coupons to be attached to said bonds shall be in substan-
tially the following form:
Ordinance No. 1848 (eon't)
NO.
On the i'irst day of , 19 the City of Bremerton
~¥ashington, will pay to bearer at the o~fi-ce oi~-~'City Treasurer ill Brem-
erton the sum of DOLLARS in lawful money oI' the United States
of America from a special fund of said city known as "Bremerton 1949 Water
and Sewer Revenue Bond Redemption Fund", said sum being the semiannual in-
terest due that day on its water and sewer revenue bond dated October 1,
1949, and numbered
CITY OF BREMERTON, WASHINGTON
By
ATTEST: Mayo r
City Clerk
Section 3o Said bonds shall be signed by the ~.~ayor of the City and
attested by the City Clerk under the corporate seal of the City, and the
interest coupons attached to said bonds shall be signed with the facsim-
ile signatures o~' said officials.
Section 4. That there be and is hereby created in the office oI' the
City Treasurer a special fund to b e known as "Bremerton 1949 Water and
Sewer Revenue Bond Redemption Fund", which fund is to be drawn upon fo~. the
sole purpose of paying the principal anm interst oI' the bonds authorized
herein. The City of Bremerton hereby obligates and binds itself to set
aside and pay into said Bond Redemption Fund out of the gross revenue of
its combined water and sewerage system and all additions and improvements
thereto, certain fixed amotu~ts necessary to pay the principal and inter-
est on all the outstanming bonms authorized herein as the same respec2-
tively become due and payable.
Such payments shall be made into said Bond Redemption Fund on or be-
fore the twentieth day of each month in the amounts hereinaI'ter specified~
(a) Beginning with October, 1949, and continuing as long as any of
the bonds authorized herein are outstanding and unpaid, an amount equal to
at least one-sixth of the interest to become due and payable at the end of
the next ensuing six-months period on all the bonds then outstanding
Ih) Beginning with October, 1950, and continuing as long as any of
the b6nds authorized herein are outstanding and unpaid, an amount equal to
at least one-twelfth of the principal of said bonds to become due and pay-
able on the next principal payment date
Provided, however, that when there is su~'ficient money in said Bond
Redemption Fund an~ the Reserve Account hereinafter created to pay the prin-
cipal and interest to maturity of all the outstanding bonds authorized here-
in, then no further payments need be made into said Bond Redemption Fund.
Said amounts so pledged are hereby declared to be a p?ior lien and
charge upon the gross revenue o~' saim combined water and sewerage system
and all additions and improvements thereto, superior to all other charges
of any kind or nature except the necessary cost oI' maintenance and oper-
ation oI' said combined system and except the ~harges necessary to pay the
principal and interest oi' the outstanding water revenue bon~s of the City
issued under dates of January 1, 1939 and May 1, 1942 and the outstanding
sewer revenue bonds oi' the city issued under date of June 1, 1946.
There is hereby created a Reserve Account in said Bond Redemption Fund,
and the City hereby agrees that it will set asime and pay into saim Reserve
Account on or before October 1, 1959, the sum of ~40,000 out of the surplus
revenue ol' the combined water anm sewerage system.
The City further agrees that when said sum has been pai~ into said
Reserve Account, it will at all times maintain that amo~mt therein until
~here is a suI'ficient amount in the Bond Redemption Fund and Reserve Ac-
count to pay the principal and interest to maturity of all the outstand-
ing bonds authorizem herein. In the event there shall be a deficiency in
the Bond Redemption Fund to meet maturing installments oI' either principal
or interest, such deficiency shall be made up I'rom the Reserve Account by
the withdrawal of cash therefrom. Any deficiency created in the Reserve
Account by reason o~' any such withdrawal shall then be made up from moneys
from the revere o~f~~~,~ water and sewerage system z'irst avail-
able after ,maki~g' "'
~ necessary ~provision for the required payments into the Bond
Redemption Fund.
Ordinance No. 184'8 (Con, t)
All money in the Reserve Account above provided for may be kept in cash
or invested in United States Government obligations maturing not later than
twelve years from date oi' purchase. Interest on any such investments shall
be deposited in and become a part of the Bond Redemption Fund.
Section 5. T~e corporate snthorities of the City of Bremerton hereby
declare, in fixing the amounts to be paid into said Bond Redemption Fund and
the Reserve Account created therein as aI°oresaid, that they have exercised
due regard to the cost of maintenance and operation of said combined water
and sewerage system and the part of the revenue oi' such system previously
pledged for the payment of the principal and interest of the outstanding wat-
er and sewer revenue bonds of the City, anohave not obligated the City to set
aside into said Bond Redemption Fund and R~serve Account a greater amount or
proportion of th&' revenue oi' such combined system than in their judgment will
be available over and above such cost of maintenance and operation and the
payment oi' the principal anG interest oI' such outstanding water and sewer
revenue bonds.
Section 6. The City of Bremerton hereby covenants with the owner and
holder oi~ each of sai~ bonds as follows:
(a) The City will establish, maintain and collect rates an~ charges for
water and sewerage services, for as long as any ot~ the bonds authorized here-
in are outstanding, which shall be a~equate to provide sufficient revenue to
meet all obligations of the City as herein set forth, including the payment
of cost of operation and maintens~ce of said combined water and sewerage sys-
tem, the payment of the amounts necessary ~o pay the principal and interest
of the outstanding water revenue Oonds oz° the City issued under dates of Jan-
uary l, 1939 and ~ay l, 194~, an~ the outstanding sewer revenue bonds of the
City issued under date of June l, 19~6, an~ the payment of the amounts neces-
sary to pay the principal andinterest of the bonds authorized herein.
(b) The City will at all times maintain and keep said combined system
and all additions and improvements thereto in good repair, working order and
conmition, and will at all times operate such properties and the business in
connection therewith in an efficient manner and at a reasonable cost.
(c) The City will not sell or otherwise ~ispose of the properties of
such combined system unless provision is made for payment ~.nto the Bond Re-
demption Fund oI' a sum sdfficient to pay the principal and interest of all
the outstanding bonds autho~ized herein in accordance with the terms thereof.
Section V. The moneys derived from the sale of the bonds authorized
herein shall be used solely for the pay~ent of the cost of acquiring, con-
structing an~ installing the additions and improvements to the combined water
and sewerage system oi' the City as provided in Ordinance No. 1845, and the
City o~ficials are hereby authorized and directed to do everything necessary
for the acquisition, construction and installation o~~ such additions and im-
provements, I'or the execution, issuance and sale oI° said bonds as hereinafter
provided, and for the proper use and application of ~he l~unds derived from
such sale.
Section 8. The bonds authorized herein shall be sold at public sale,
the date, time an~ place of which is hereby fixed at 12:15 p.m., Pacil'ic
Standard Time on October l~, 1949, at the City Hall in Bremerton, Washington.
The City Clerk is hereby authorized and directed to cause a notice oI~ the sale
oi' said bonds to be published at least once in the official city newspaper
and to be published at least once a week I~or ~wo consecutive weeks in' the
Seattle ~aily Journal of CoKmmerce.
Section 9. The authority of the City to issue and sell the remaining
$100,000 of water and sewer revenue bon~s oi~ the City authorize~ by Ordin-
ance No. 184§ is hereby in all respects rescinded anG canceled. No~hing in
this section shall, however, prohibit the City from issuing additional water
and sewer revenue bonds for purposes other thsan' those provided in said Ord-
inance No. 1845.
Section 10. This ordinance shall become effective immediately upon its
passage, approval and publication as provided by law.
PASSED unanimously by the City Council oI' the City of Bremerton, signed
by the ~ayor, and attested by the City Clerk in authentication oI' such pass-
age, this 5th day of October, 1949.
CITY OF BRE~,~ERTON, WASHINGTON
ATTEST: N~yo r